NEW YORK (CNN/Money) - Oil prices rose for a second day on Wednesday after a pair of car bombs exploded in Saudi Arabia's capital and after the U.S. government reported another decline in lean winter heating fuel stocks.
Light crude for February delivery closed $1.87 higher at $43.64 a barrel on the New York Mercantile Exchange.
In London, Brent crude fell 90 cents to $39.40, catching up with heavy U.S. losses earlier this week when the International
Petroleum Exchange was closed on Monday and Tuesday.
Two large blasts heard in the Saudi capital, Riyadh, near the Interior Ministry, sent prices higher. Witnesses also reported hearing gunfire, and the cause of the explosions was not clear.
Earlier in the session, light crude futures spiked immediately following a report from the Energy Information Administration that showed crude inventories fell by 800,000 barrels in the week ended Dec. 24 to 295.1 million barrels. The number was well-short of the 200,000-barrel increase analysts had forecast.
Distillate supplies, the oil used for heating fuel, were also weaker than expectations, down 800,000 barrels to 119.1 million. Analysts expected heating fuel supplies to decrease by 700,000 barrels.
But crude retreated and was trading down just before the blasts.
 |
YOUR E-MAIL ALERTS
|
Follow the news that matters to you. Create your own alert to be notified on topics you're interested in.
Or, visit Popular Alerts for suggestions.
|
|
|
Trader Phil Flynn from Alaron Trading told CNN/Money that the EIA report would "probably not have a big affect on prices."
"Analysts are already looking ahead to next week and betting on warmer forecasts. If it doesn't get as warm as we expect then next week the market will run back up."
Lower-than-normal temperatures last week helped pull down heating oil stocks, which are more than 12 percent below last year's levels, but U.S. home heating needs were estimated to be nearly 18 percent below normal for this week, the U.S. National Weather Service said Monday.
|
